State Bank of India (SBI), has increased its base rate by 0.10 per cent or 10 basis points (bps), according to its website. The new rate, that is, 7.55 per cent per annum is effective from December 15, 2021.
Earlier this year, SBI decreased the base rate by 0.5 per cent, for the interest rates to come down to 7.45 per cent.
The Reserve Bank of India sets the minimum rate of interest. Banks are not allowed to lend at a lower base rate for their customers than the predetermined base rate by the central bank.
SBI revised fixed deposit rates will apply to fresh deposits and maturing deposits that are to be renewed. These interest rates will be also applicable in case of domestic term deposits held by cooperative banks, the bank said.
SBI also hiked the interest of fixed deposits above Rs 2 crore, with effect from December 15, 2021. The interest rates of FDs below Rs 2 crore have been kept unchanged by SBI.
The State Bank of India’s revised rates came into effect a week after the central bank held its bi-monthly Monetary Policy Committee (MPC) meeting on December 8. The repo rate and reverse repo rate are currently at 4 per cent and 3.35 percent, respectively. The central bank’s governor Shaktikanta Das had announced that they had decided to keep the repo rate unchanged for the time being, its lowest in the last 20 years.
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